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A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales

(Upper A Subscript tAt ), as shown below, indicates that an increasing trend is present. Smoothing constants are assigned the values of

alpha = 0.2 and beta =0.4 The firm assumes the initial forecast for month 1 (Upper F 1F1 )was13.00 units and the trend over that period Upper T 1T1 was

2.00 units.

Using trend-adjusted exponential smoothing, Forecasts (Upper F Subscript tFt ), Trend (Upper T Subscript tTt ), and Forecasts Including Trend (FIT Subscript tFITt ) for months 1 through 4 have already been developed and are provided below. Continue with the process and determine Upper F Subscript tFt , Upper T Subscript tTt , and FIT Subscript tFITt for months 5 and 6 (round your responses to two decimal places):

Month (t )	Actual Demand (Upper A Subscript tAt )	Forecast (Upper F Subscript tFt )	Trend (Upper T Subscript tTt )	Forecast Including Trend (FIT Subscript tFITt )
1	14.0	13.00	2.00	15.00
2	16.0	14.80	1.92	16.72
3	20.0	16.58	1.86	18.44
4	20.0	18.75	1.98	20.73
5	25.0	?	?	?
6	21.0	?	?	?
7	32.0
8	26.0
9	38.0
10	-

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